A 28-year-old woman has revealed how she was able to purchase her first home at the age of 22, with top tips on how first-time buyers can save up enough money for a deposit for a property of their own. With analysis from Halifax concluding that the average age of a first-time home buyer in the UK is estimated to be at around 32 years old, and with the average cost of first-time homes up by 13% in 2022, purchasing a property for the first time has become increasingly difficult for young people.
However, while saving for your own home may seem like a daunting prospect, those who have been able to buck this trend and make this life-changing purchase at a young age are proof that this goal isn’t impossible. To provide some tried and tested tips to help Brits save for their first home, CashLady.com have partnered with Lauren Simpson, aged 28 from York, whose savvy saving techniques allowed her to save up enough money for her first home at only 22 years of age.
She said: "I bought my first flat with my partner at age 22. I feel so lucky that I was able to do so at such a young age, and almost seven years on, we’ve even been able to purchase our own house! It seems like right now, it's more difficult than ever to get on the property ladder, but I used a number of saving tips to put down a deposit.
"Hopefully my tips might help those looking to save for a first home."
Alongside her full-time job, Lauren works with her fiancée Elizabeth on their side hustle, Sea & Bee, a small business making and selling handmade, natural bath bombs. She has shared her story to inspire Brits looking to save up for their first home.
Tip 1: Be smart with your budgeting
“Budgeting is a great way to see exactly where your money is being spent, but taking accountability is key. It is important to work through all your expenditures such as rent, food, phone bills and subscriptions and be honest with yourself about whether the money you are spending is actually worthwhile to you.
“The number one thing that really allowed us to successfully save was having a weekly budget that we could go and spend on whatever we fancied! It is hard to believe now but that splurge of cash was £30 per week.”
Tip 2: Cash stuffing
“We would usually take some money out in cash, such as our food budget allocation (for us this was £150 per month) and put it in envelopes. This technique is known as ‘cash stuffing’. We didn’t buy a fancy cash-stuffing wallet, which I’ve seen trending recently, as this is an additional cost. This technique works really well, as the money that you have is visible in front of you and not just a number on a statement.”
Tip 3: Get familiar with banking and banking apps
“When saving up for a deposit, we set up a joint bank account to collate our savings. One thing that our bank offered was a rewards scheme for a small fee per month. This scheme meant that if we paid bills via direct debit from this account, they would give us money back for doing so.
“Even though we had very few bills at this time, we set it up so that our phone and subscription bills came out of this account. Very quickly, and without realising, we would have £50 in the rewards scheme. This is something that we still use, even after buying our property.
“Being from Yorkshire, we love things that are free, which is why when banks offered us money to switch to them, we took them up on this. Who doesn’t love free money? It may seem like a bit of a faff to change where your wage gets paid into, but it’s money! You could earn typically between £100 and £200 for a little bit of admin work. This was very beneficial in the long run as every little helps!”
Tip 5: Allocate your savings into pots
“While saving for our deposit, we created a physical pot to put ideas for activities in. We used to pick out one a month and save our spare cash to be able to do this. Sometimes, this was just a takeaway, but it was definitely something to look forward to. We would also save any vouchers that we got from the supermarkets, and always signed up for their rewards schemes to save on our shopping.
“While Monzo was not a big thing when we were saving for our deposit, I can imagine how helpful it would have been. Having a Monzo account now has really helped me with saving and budgeting in everyday life. Monzo (and other similar banks) have a feature where you can round up transactions, which sometimes may only be a few pence, but it all accumulates. You can also create ‘pots’, set saving goals and lock them to stop you from dipping in.”
Tip 6: Purchase homeware secondhand
“While not everyone is a big fan of second-hand goods, it is a great way to start out. If you are saving up and family members or friends are getting rid of furniture, upcycling could be a great project to save money, put your own stamp on things and bring your character to the property. With any luck, you’ll be able to sell these later on and make a profit!”
Commenting on Lauren’s story, personal finance expert at CashLady.com, Dan Whittaker, said: “Lauren’s first-hand experience of buying her own home at such a young age is proof that switching up how you save your money can make a big impact on your bank account. Even something as simple as signing up for reward schemes or trying a different budgeting technique, such as cash stuffing, could encourage Brits to be more aware of their spending and set them on the right path, making that dream of owning their first home a reality.”
